ACCT 211 Chapter 4 MindTap Questions

Determine which statements below are correct regarding merchandise available for sale during a period. (Check all that apply).

Beginning inventory + Net Purchases = Merchandise available for sale. Ending inventory + Cost of goods sold = Merchandise available for sale.

X-Mart purchased $300 of merchandise and paid immediately. Demonstrate the journal entry to record this transaction, assuming the perpetual inventory system is used.

Debit Merchandise Inventory $300; credit Cash $300.

Merchandise inventory can be described as: (Check all that apply.)

-An asset account. -Products that a company owns and intends to sell. -An account appearing on a balance sheet of a merchandiser. -An account increased with a debit.

Show your understanding of fa merchandiser by completing the following statement. Merchandisers earned net income by (buying/manufacturing) __ and (selling/purchasing) __ merchandise.

-Buying. -Selling.

Cost of goods sold is characterized by which of the following statements? (check all that apply.)

-Cost of goods sold is also called cost of sales. -Cost of goods sold is an expense reported on the income statement. -Cost of goods sold is used to figure gross profit. -Cost of goods sold includes the expenses of buying and preparing an item for sale.

Determine which of the following statements below regarding a merchandiser are correct. (Check all that apply.)

-Merchandisers are also identified as wholesalers. -Merchandisers are often identified as retailers. -A merchandiser earns net income by buying and selling merchandise.

Which of the statements below are correct regarding cost of goods sold?

Cost of goods sold is the expense of buying and preparing merchandise.